Abstract

Knowledge transfer is the process whereby the reciever unit identifies and learns
specific knowledge resides in the source unit, and applies the knowledge in another
context. This study explores the impact of client, vendor and Transactive Memory
System (TMS) in facilitating knowledge transfer between IT outsourcing project
teams. Recent research in information system has highlighted the importance of
transactive memory in improving the knowledge process's ability and subsequently
team performance. A Transactive Memory System is a group-level concept, referring
to the aspect of the knowledge that a person has about what another person knows.
However, there is limited research reported on the contribution of TMS for knowledge
transfer in IT outsourcing particularly among Malaysian Public Agencies. To address
this gap, the ultimate aim of this research is to contribute towards a viable knowledge
transfer model and suggest the implementation guidelines for TMS to facilitate the
knowledge transfer process. To achieve this purpose, the study incorporates three
underlying theories; knowledge-based view, organisational learning theory and social
exchange theory for the ideation of concepts. In response to the research aim, six
research objectives with 16 hypotheses have been outlined to be tested. The data were
collected via a cross-sectional self administered survey, which yielded 195 usable
questionnaires from IT personnel at three e-government lead agencies located in
Putrajaya and Cyberjaya. The measurement opted was based on subjective perception
instead of objective measures as the respondents are doubt to sufficiently quantify the
volume of transferred knowledge. This study employed various types of multivariate
analysis and Partial Least Squares Structural Equation Modelling (PLS-SEM) to
analyse the collected data. The result of the goodness of fit index satisfies the
recommended value while 12 hypotheses were suppgrted. Hence, the developed
model is considered acceptable. The validation results revealed that the entire model
fit is appropriate and indicated the stability of theory used in building a model.
Additionally, the findings showed that knowledge transfer in IT outsourcing is
significantly affected by three sets of factors; the client factor, vendor factor and TMS
factor. Specifically, the results depicted that credibility and disseminative capacity of
the vendor's are crucial in affecting knowledge transfer in IT outsourcing. The
research confirmed that TMS routines do exist among project members with the
referral and allocation routines yielding the most significant routines that affect
knowledge transfer. In addition, the research proved that knowledge transfer has a
significant effect towards IT outsourcing project success. The present research will
provide some usehl insights not only for IT project managers to better manage the
transferred knowledge; however, to effectively develop the IT outsourcing team's
TMS as the more value this TMS has to prevent knowledge or skill loss. Additionally,
the study contributes to theory development by introducing a new scale measurement
for TMS and knowledge transfer constructs.